Florida Blues

One of the states that has been hit the hardest in this housing downturn is Florida. According to WSJ and Commerce Department, in October building permits for new construction- an important indicator of future housing activity- came to just one-quarter of their 2005 peak levels (Hit by U.S. automakers troubles, Ohio has the highest foreclosure rate in the country, according to the Mortgage Bankers' Association) . GS economist Jan Hatzius said that Florida is unlikely to get much help from strong global economic growth due to low exports level. Companies that supply homebuilders continue to feel the pain, such as PGT, Inc., a manufacturer and supplier of residential impact-resistant windows and doors. During the third quarter of 2007, new housing starts continued to decline, and housing inventory levels continued to rise,'' said Rod Hershberger, PGT's President and Chief Executive Officer. Home starts in the third quarter of 2007 were down 53% compared to the third quarter of 2006 and down 29% from the second quarter of 2007. Unsurprisingly, its quarterly earnings growth also fell 78.90% yoy. Furthermore, MarineMax, Inc., a Florida-based operator and dealer of recreational boats, reported that its fiscal fourth-quarter profit slid 48 percent on higher costs and lower margins due to a soft retail environment.